Vantage Drilling Company Reports First Quarter 2014 Results

NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Vantage Drilling Company 
NYSE MKT SYMBOL:  VTG 
MAY 6, 2014 
Vantage Drilling Company Reports First Quarter 2014 Results 
HOUSTON, TX--(Marketwired - May 06, 2014) - Vantage Drilling Company
("Vantage" or the "Company") (NYSE MKT: VTG) reports net
income for the three months ended March 31, 2014 of $24.8 million or $0.07 per
diluted share as compared to a net loss of $24.9 million or ($0.08) per diluted
share excluding approximately $98.3 million of charges for the early retirement
of debt, for the three months ended March, 31, 2013. Including the charges for
the early retirement of debt for the three months ended March 31, 2013, the
Company reported a net loss of $123.2 million or ($0.41) per diluted share. 
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are
pleased to announce another strong quarter of operating results. We also made
good initial progress on our debt reduction plan, paying down almost $30
million during the quarter and we remain on track to reach our goal for 2014
given our contracted backlog and high operating efficiency across the
fleet." 
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor,
with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer,
the Titanium Explorer and the Tungsten Explorer, as well as an additional
ultra-deepwater drillship, the Cobalt Explorer, now under construction, and
four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs.
Vantage's primary business is to contract drilling units, related
equipment and work crews primarily on a dayrate basis to drill oil and natural
gas wells. Vantage also provides construction supervision services for, and
will operate and manage, drilling units owned by others. Through its fleet of
seven owned drilling units, Vantage is a provider of offshore contract drilling
services globally to major, national and large independent oil and natural gas
companies. 
The information above includes forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934. These
forward-looking statements are subject to certain risks, uncertainties and
assumptions identified above or as disclosed from time to time in the
company's filings with the Securities and Exchange Commission. As a result
of these factors, actual results may differ materially from those indicated or
implied by such forward-looking statements. 
/T/ 
Vantage Drilling Company 
Consolidated Statement of Operations 
(In thousands, except per share amounts) 
(Unaudited) 
Three Months Ended 
March 31, 
---------------------- 
2014        2013 
----------  ----------
Revenues
  Contract drilling services                         $  214,932  $  134,664
  Management fees                                         4,582       3,198
  Reimbursables                                          12,951       9,139 
----------  ---------- 
Total revenues                                      232,465     147,001 
----------  ----------
Operating costs and expenses
  Operating costs                                       101,722      75,317
  General and administrative                              8,115       7,427
  Depreciation                                           31,625      24,861 
----------  ---------- 
Total operating costs and expenses                  141,462     107,605 
----------  ----------
Income from operations                                   91,003      39,396
Other income (expense)
  Interest income                                            13          96
  Interest expense and other financing charges          (54,487)    (59,662)
  Loss on debt extinguishment                              (106)    (98,327)
  Other, net                                                779         901 
----------  ---------- 
Total other income (expense)                        (53,801)   (156,992) 
----------  ----------
Income (loss) before income taxes                        37,202    (117,596)
Income tax provision                                     12,378       5,605 
----------  ----------
Net income (loss)                                    $   24,824  $ (123,201) 
==========  ========== 
Earnings (loss) per share
  Basic                                              $     0.08  $    (0.41)
  Diluted                                            $     0.07  $    (0.41) 
Vantage Drilling Company 
Supplemental Operating Data 
(Unaudited, in thousands, except percentages) 
Three Months Ended 
March 31, 
-------------------- 
2014       2013 
---------  ---------
Operating costs and expenses
Jackups                                                $  23,760  $  21,845
Deepwater                                                 55,810     36,723
Operations support                                        10,759      7,984
Reimbursables                                             11,393      8,765 
---------  --------- 
$ 101,722  $  75,317 
---------  --------- 
Utilization
Jackups                                                    100.0%      98.4%
Deepwater                                                   96.5%      88.5% 
Vantage Drilling Company 
Consolidated Balance Sheet 
(In thousands, except par value information) 
March 31,   December 31, 
2014          2013 
------------  ------------ 
(Unaudited) 
ASSETS
Current assets
  Cash and cash equivalents                      $     65,261  $     54,686
  Restricted cash                                          --         2,125
  Trade receivables                                   216,639       168,654
  Inventory                                            58,875        55,804
  Prepaid expenses and other current assets            20,456        23,717 
------------  ------------ 
Total current assets                              361,231       304,986 
------------  ------------
Property and equipment
  Property and equipment                            3,482,799     3,472,407
  Accumulated depreciation                           (313,334)     (281,759) 
------------  ------------ 
Property and equipment, net                     3,169,465     3,190,648 
------------  ------------
Other assets
  Investment in joint venture                          32,374        32,482
  Other assets                                         96,018       100,027 
------------  ------------ 
Total other assets                                128,392       132,509
------------  ------------
Total assets                                     $  3,659,088  $  3,628,143 
============  ============ 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                               $     62,906  $     66,860
  Accrued liabilities                                 133,245        97,481
  Current maturities of long-term debt and 
revolving credit agreement                          53,500        63,500 
------------  ------------ 
Total current liabilities                         249,651       227,841 
------------  ------------
Long-term debt, net of discount of $36,486 and
 $39,325                                            2,835,514     2,852,050
Other long-term liabilities                            41,502        42,796
Commitments and contingencies
Shareholders' equity
  Preferred shares, $0.001 par value, 10,000 
shares authorized; none issued or outstanding           --            --
  Ordinary shares, $0.001 par value, 500,000 
shares authorized; 305,997 and 304,101 shares 
issued and outstanding                                 306           304
  Additional paid-in capital                          899,067       896,928
  Accumulated deficit                                (366,952)     (391,776) 
------------  ------------
Total shareholders' equity                        532,421       505,456 
------------  ------------
Total liabilities and shareholders' equity       $  3,659,088  $ 
3,628,143 
============  ============ 
Vantage Drilling Company 
Consolidated Statement of Cash Flows 
(In thousands) 
(Unaudited) 
Three Months Ended March 31, 
---------------------------- 
2014           2013 
-------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                              $      24,824  $    (123,201)
Adjustments to reconcile net income (loss) to
 net cash provided by (used in) operating
 activities:
  Depreciation expense                                31,625         24,861
  Amortization of debt financing costs                 2,964          3,995
  Amortization of debt discount (premium)              2,839            (97)
  Non-cash loss on debt extinguishment                   106          6,070
  Share-based compensation expense                     2,141          2,069
  Deferred income tax expense (benefit)                  (57)           778
  Equity in loss of joint venture                        108            133
  Loss on disposal of assets                             104              1
Changes in operating assets and liabilities:
  Restricted cash                                      2,125             --
  Trade receivables                                  (47,985)        17,521
  Inventory                                           (3,071)        (4,319)
  Prepaid expenses and other current assets            3,318          3,963
  Other assets                                         1,021            290
  Accounts payable                                    (3,954)        (9,713)
  Accrued liabilities and other long-term 
liabilities                                        33,296        (42,762) 
-------------  ------------- 
Net cash provided by (used in) operating 
activities                                       49,404       (120,411) 
-------------  -------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to property and equipment                 (9,371)       (15,135)
  Proceeds from sale of property and equipment            --              2 
-------------  ------------- 
Net cash used in investing activities             (9,371)       (15,133) 
-------------  -------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of senior secured 
notes, net                                             --        775,000
  Proceeds from issuance of term loan, net                --        344,750
  Repayment of long-term debt                        (19,374)    (1,006,249)
  Proceeds from or (repayment of) revolving 
credit agreement, net                             (10,000)            --
  Debt issuance costs                                    (84)       (23,683) 
-------------  ------------- 
Net cash provided by (used in) financing 
activities                                      (29,458)        89,818 
-------------  ------------- 
Net increase (decrease) in cash and cash 
equivalents                                      10,575        (45,726)
  Cash and cash equivalents--beginning of 
period                                             54,686        502,726 
-------------  -------------
  Cash and cash equivalents--end of period     $      65,261  $     457,000 
=============  ============= 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700 
INDUSTRY:  Energy and Utilities - Oil and Gas , Energy and Utilities -
Pipelines 
SUBJECT:  ERN 
-0-
-0- May/06/2014 10:00 GMT
 
 
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